BACKGROUND

tadb_refinancingTanzania Agricultural Development Bank Limited (TADB) is a state-owned development finance institution (DFI) established as an apex national-level bank with the key role of being a catalyst for delivery of short, medium and long- term credit facilities for development of agriculture in Tanzania.

Its establishment is among the key initiatives and national goals enshrined in the Vision 2025 to achieve food self-sufficiency and food security, economic development and poverty reduction. The bank is expected to facilitate transformation of agriculture from subsistence to commercial across the country through financing and other interventions in the entire agriculture value chains.

The Bank is to assist the Government in implementing its policies on enhancing financial sector’s inclusion in the rural areas. It will work closely with the Government of Tanzania and the Bank of Tanzania in shaping and implementing the policies with regard to credit/support for agriculture and rural sectors.

THE OBJECTIVE

The overall objective of TADB is to be a national level bank for the agricultural sector that facilitates achievement of the following:-

  • Sustainable food self-sufficiency and food security;
  • Transformation of agriculture from subsistence to commercial in order to effectively and sustainably contribute to economic growth and poverty reduction.
FUNCTIONS OF TADB

The main functions of TADB, specifically is to support the Government in the following:-

  • Coordinating government intervention and interface with other stakeholders in the field;
  • Developing suitable policy, legal and regulatory frameworks for the sector;
  • Guiding the development of the agricultural sector;
  • Gathering relevant information about the sector and monitoring the performance of the sector.
ESTABLISHMENT PURPOSE

AgriThe bank was established under the Company Act, 2002 CAP 212 in September 2012.

The establishment purpose of the Bank was to lead capacity-building strategies and programmes to strengthen the agriculture financing value chain and to support the Government of Tanzania initiatives to shape and implement policies and initiatives for agricultural and rural lending.

The Banks as a key stakeholder in the development and envisaged revolution of the agricultural sector, it is committed to delivering on undertakings made in the context of the national agriculture related strategies consistent with its Vision, Mission and Objectives.

Further the bank was tasked with implementation of the Government’s Second-Generation Financial Sector Reforms, the national policies and strategies for the development of the agricultural sector, such as the following:-

  • Tanzania Development Vision 2025 for the Mainland, and Vision 2020 for Zanzibar,
  • Zanzibar Strategy for Growth and the Reduction of Poverty (MKUZA);
  • National Strategy for Growth and Reduction of Poverty (MKUKUTA)for Mainland Tanzania;
  • Agricultural Sector Development Strategy (ASDS);
  • Tanzania Agriculture and Food Security Investment Plan (TAFSIP)
  • Kilimo Kwanza Initiative;
  • Five Year Development Plans (FYDP) and;
  • Big Results Now (BRN) Initiative